Imports of diesel by Brazil fall 42% since the subsidy program

RIO DE JANEIRO (Reuters)-imports of diesel by Brazil have fallen 42% from the beginning of the fuel subsidy program, in June, until the last month, compared with the same period of the previous year, official government data showed, amid a series of problems in the implementation of the subsidy, as delay in payment.
The fall of external purchases illustrates claims made by importers, who said they were reducing their activities due to the Government's program, created as a response to the outcry of the Teamsters, in a historic strike in May against the high prices of the diesel.
The reduction in foreign purchases of diesel also shows how Petrobras is being called to participate more in the market, either with its own production or imports.
In June, July and August, imports of diesel fuel consumed more of Brazil — — totaled about 2,170,000 cubic meters, compared with about of 3,750,000 on the same three months last year, according to data from the Ministry of industry, trade Outside services.
In August, imports of fuel also fell 41% against the same month of 2017, to 754,773 cubic meters.
With the program, Petrobras and other Brazilian refineries and importers of diesel fuel that have joined the plan reduced fuel prices to distributors, with the promise of being reimbursed by up to 30 cents per litre, depending on actual conditions of market.
However, importers comes pointing out that calculation for the payment of the subsidy does not adequately reward companies, according to the Brazilian Association of importers of fuels (Abicom).
In addition, much of the subsidy payments due until now by the Government is late, including large amounts anticipated by Petrobras.
In this scenario, Petrobras is increasing production at its refineries and accounting for more than 90% of imports, according to executives reported in recent interviews.
Import volumes contrast with 2017, when they reached the highest level since at least 2000, according to a historical series of ANP.